Tesla, the electric-vehicle manufacturer founded by Elon Musk, reported lower-than-expected delivery numbers for the third quarter, affecting both its annual delivery goals and stock performance. The company delivered 462,890 vehicles from July to September, marking a 6.4% increase from the previous quarter and signaling a potential uptick in demand as Tesla has adjusted its financing rates in the U.S.
Additionally, Tesla benefited from a new incentive from the Chinese government designed to encourage consumers to replace older vehicles with electric models.
Despite the slight increase, Wall Street analysts had anticipated deliveries of 469,828 vehicles, as reported by 12 analysts surveyed by LSEG. Following the announcement, Tesla’s shares fell by $9.82, or 3.8%, trading at $248.20 in New York.
To meet last year’s total of 1.81 million deliveries, Tesla would now need to achieve a record 516,344 vehicle deliveries in the fourth quarter. Failure to meet this target could lead to the company’s first annual decline in deliveries.
The electric vehicle market has become increasingly competitive, with companies like BYD and Xpeng from China expanding their presence through government-backed initiatives. Furthermore, BMW recently surpassed Tesla in the European battery electric-vehicle sector, fueled by the success of the BMW i4, which is viewed as a direct competitor to Tesla.
Consumer concerns regarding high vehicle prices and inconsistent charging infrastructure have also impacted demand for electric vehicles. In light of these challenges, several traditional automakers have shifted their strategies, emphasizing hybrid vehicles over pure electric options; Ford notably abandoned plans for an electric SUV, opting for a hybrid variant instead.
As Tesla looks to adapt, it will introduce its long-awaited robo-taxi product during an event on October 10 in Los Angeles, aiming to shift focus towards AI and autonomous technologies. Musk teased on social media that this event will be significant, stating, “This will be one for the history books.”
Tesla was established in 2003 by Martin Eberhard and Marc Tarpenning, who were motivated by environmental concerns after General Motors dismantled its electric vehicle program. Elon Musk began investing in Tesla early on, became a board member in 2004, and took on the role of CEO in 2008, launching Tesla’s first electric vehicle, the Roadster, that same year.
In addition to Tesla, Musk leads several other ventures, including SpaceX and Neuralink, a company exploring brain chip technology. Analysts at Wedbush Securities expressed optimism about Tesla’s ability to reach 1.8 million deliveries by year’s end, acknowledging that while this delivery report is a positive development, significant efforts remain to enhance delivery growth.